If a worker coming from or going abroad is subject to UK NICs
legislation (see
NIM16403 for more information), the
conditions in section 10(1) of the SSCBA 1992, (see
NIM13021), must be satisfied for Class
1A NICs liability to arise. One of these conditions is that the
benefit must be chargeable to income tax under ITEPA 2003 on an
amount of general earnings received by the worker from any
employment (before 6 April 2003 – emoluments chargeable to
income tax under Schedule E).
To prevent double taxation, the UK has entered into Double
Taxation Agreements (DTAs) with many countries. In certain
circumstances, one country or the other will
Where the UK gives up its claim to tax, no Class 1A NICs are
due. Where the UK gives credit for the other country’s tax
against the tax due on a benefit chargeable to income tax under
ITEPA 2003 (before 6 April 2003 – chargeable to income tax
under Schedule E), Class 1A NICs are due on the total amount of
general earnings, even though some of the tax may not be payable
because of the DTA. That is because the general earnings are
chargeable. Chargeable does not mean the same as payable or
charged, see
NIM13070. When considering liability for
Class 1A NICs, in these circumstances, consider the effect of the
relevant DTA on the individual’s UK income tax liabilities.
See EIM40601 for guidance on the application of DTAs to
general earnings (before 6 April 2003 – see SE40601)
